industry 4.0 driving the productivity leap of … weekly bulletin/miti_weekly... · the ministry of...

1MITI Tower, No. 7, Jalan Sultan Haji Ahmad Shah, 50480 Kuala Lumpur, Malaysia Tel: +603 - 8000 8000 Fax: +603 - 6202 9446

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The Malaysia Productivity Blueprint (MPB) launched on 8 May 2017 is one of the strategies under the11th Malaysia Plan to unlock productivity for the country. The Ministry of International Trade andIndustry (MITI) has been driving the productivity enhancement initiatives for the Electrical andElectronics (E&E) industry, which has been identified as one of the nine priority subsectors in theMPB. Evidently, the E&E industry is the backbone of the manufacturing industry, contributing 36.7%

INDUSTRY 4.0 DRIVING THE PRODUCTIVITY LEAP OF THE E&E SECTOR

of total exports and 27.8% GDP share of total manufacturing in 2017. In an effort to further boost E&E’s contribution to the economy, the Electrical & ElectronicsProductivity Nexus (EEPN) led by industries and supported by the Government was formed in 2017.Key strategies for the E&E industry under implementation by the EEPN include enhancing highervalue-added activities, nurturing the E&E talent pool, accelerating the adoption of Industry 4.0 andstrengthening the development of local E&E small medium enterprise (SMEs). To ensure the successof the initiatives under EEPN, the Delivery Management Office (DMO) of Malaysia ProductivityCorporation (MPC) undertakes the role to coordinate, monitor and evaluate delivery efforts of theMPB with YBhg Dato’ Wong Siew Hai as the Chairman of the EEPN.This Next Gen Manufacturer Conference 2018 jointly organised by Intel and EEPN in MITI today is aninitiative under the key strategy to accelerate adoption of Industry 4.0. The event exemplifies thesynergy of cooperation between industry players and the Government in spurring the productivitygrowth of Malaysian E&E companies. The Conference aims to accelerate Industry 4.0 adoption amongst the E&E industry by bringingindustry players, ecosystem providers and key Government agencies together to discuss about thereal things that matter to companies when starting the Industry 4.0 journey. Besides the sharing ofthoughts and views by panellists and technical experts, the Conference today features a uniqueWorkshop that took the 400 participants through a to-do list for embarking on the Industry 4.0journey. “I am pleased to note EEPN and INTEL’s active role in undertaking such awareness programmes to drive the adoption of Industry 4.0, in line with the Government objectives. It is important forindustryplayers and public sector to collaborate to drive the Industry 4.0 agenda for the country. Moreimportantly, adoption of Industry 4.0 should be a bottom-up approach instead of top-down whereindustry players themselves need to take charge and push for rapid adoption.” said Dato’ Seri Ong KaChuan. Dato’ Seri Ong emphasised, “as a developing country that has aspirations to become a high incomenation by 2020, the greatest challenge in facing this disruptive revolution is mindset change. Thinkingthat Smart Manufacturing, Industry 4.0 and factory modernization are only for large multinationalcompanies is a general misconception. With the race towards Industry 4.0 on, our industry especiallySMEs must be more innovative and creative to continue moving up the global value chain with thehelp of new edge technology. ” Besides providing a platform for the Malaysian E&E ecosystem to network, conferencessuch as this,hopesto provide Malaysian E&E manufacturers the impetusto quantum leap to become the driversof Industry 4.0 adoption in the quest for productivity optimisation. Strong collaborations betweenstakeholders from multiple expertise and backgrounds are essential towards ensuring that thepotential value available is unlocked and fully utilised to propel Malaysia’s industry towards globalmarket in this era of new revolution.

Ministryof International Trade and Industry (MITI)12 April 2018


MITI Weekly Bulletin | www.miti.gov.my

Manufacturing Sector Performance, February 2018

Sales Value

Note: % refer to Y-o-Y Growth

RM 62.3 billion4.9%

Number of Employees

Salaries & Wages

1,065,849Persons2.2%

RM 3,758.8million

16.7%

Malaysia’s Manufacturing Sales Recorded RM62.3 billion,

an increase of 4.9% in February 2018

Manufacturing Top Seven Sub-sectorsSales Value , February 2018

Electrical & Electronic5.7%

6.6%Petroleum, Chemical,

Rubber & Plastic

0.8%Food, Beverage & Tobacco

Textile, Wearing Apparel, Leather & Footwear 1.6%

Transports Equipment &Other Manufacturers 2.4%

Wood, Furniture, Paper Products

& Printing 2.3%

Electrical & ElectronicsProduct 5.7%

Non-Metalic Mineral Products, Basic Metal & Fabricated

Metal Products5.1%

Source: Department of Statistics, MalaysiaNote: % refers to year-on-year change



The number of labour force increased 0.3 per cent in February 2018 as compared to the previous month.

Source: Department of Statistics, Malaysia

Labour Market, February 2018

-Labour force participation rate is defined as the ratio of labour force to the working age population, expressed as percentage.Notes :

-Unemployment rate is the proportion of unemployed population to the total population in labour force.

Note:Outside Labour Force : All persons not classified as employed or unemployed as stated above are classified as outside labour force. Includes housewives, students (including those going for further studies), retired, disabled persons and those not interested in looking for a job.



Volume Index of Wholesale & Retail Trade, February 2018

Volume index rose 7.1 per cent in February 2018

Wholesale & Retail Trade Performance February 2018

Sales Value at RM97.3 billionin February 2018

Source: Department of Statistics, MalaysiaNote: % refers to year-on-year change



International Report

Notes : * Refers to HS 151110Source:http://www.trademap.org/Index.aspx

12

3

45Malaysia

USD 2.3 Billion

IndonesiaUSD 3.3 Billion

Papua New GuineaUSD 0.4 Billion

GuatemalaUSD 0.3 Billion

HondurasUSD 0.2 Billion

IndiaUSD 1.3 Billion

ItalyUSD 0.2 Billion

SpainUSD 0.08 Billion1

23

Malaysia as The Second Largest Exporter of Crude Palm Oil, 2016

TOP FIVE: Export Destinations

5

4 TanzaniaUSD 0.08 BillionNetherlands

USD 0.5 Billion



Note: *Provisional Data Source: Ministry of International Trade and Industry, Malaysia

0

20

40

60

80

100

120

140

160

180

0

50

100

150

200

250

300

21 J

an

28 J

an

4 Fe

b

11 F

eb

18 F

eb

25 F

eb

4 M

ar

11 M

ar

18 m

ar

25 M

ar

1 A

pr

8 A

pr

No.

of C

ertif

icat

e of

Orig

in

RM m

il.

Generalised System of Preferences (GSP)

Total FOB (RM mil.) Total CO

Note: The preference giving countries under the GSP scheme are Liechtenstein, the Russian Federation, Japan, Switzerland, Belarus, Kazakhstan and Norway.

Number and Value of Preferential Certificates of Origin (PCOs)

0

1,000

2,000

3,000

4,000

5,000

6,000

0

200

400

600

800

1,000

1,200

1,400

1,600

1,80021

Ja

n

28 J

an

4 Fe

b

11 F

eb

18 F

eb

25 F

eb

4 M

ar

11 M

ar

18 m

ar

25 M

ar

1 A

pr

8 A

pr

No.

of C

ertif

icat

e of

Orig

in

RM m

il.

ASEAN Trade in Goods Agreement (ATIGA)


0

500

1,000

1,500

2,000

2,500

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

21 J

an

28 J

an

4 Fe

b

11 F

eb

18 F

eb

25 F

eb

4 M

ar

11 M

ar

18 m

ar

25 M

ar

1 A

pr

8 A

pr

No.

of C

ertif

icat

e of

Orig

in

RM m

il.

ASEAN-China Free Trade Agreement (ACFTA)


0

200

400

600

800

1,000

1,200

1,400

0

500

1,000

1,500

2,000

2,500

21 J

an

28 J

an

4 Fe

b

11 F

eb

18 F

eb

25 F

eb

4 M

ar

11 M

ar

18 m

ar

25 M

ar

1 A

pr

8 A

pr

No.

of C

ertif

icat

e of

Orig

in

RM m

il.

ASEAN-Korea Free Trade Agreement (AKFTA)


0

50

100

150

200

250

300

0

20

40

60

80

100

120

140

21 J

an

28 J

an

4 Fe

b

11 F

eb

18 F

eb

25 F

eb

4 M

ar

11 M

ar

18 m

ar

25 M

ar

1 A

pr

8 A

pr

No.

of C

ertif

icat

e of

Orig

in

RM m

il.

ASEAN-Japan Comprehensive Economic Partnership (AJCEP)


0

100

200

300

400

500

600

700

800

900

1,000

0

50

100

150

200

250

300

21 J

an

28 J

an

4 Fe

b

11 F

eb

18 F

eb

25 F

eb

4 M

ar

11 M

ar

18 m

ar

25 M

ar

1 A

pr

8 A

pr

No.

of C

ertif

icat

e of

Orig

in

RM m

il.

ASEAN-India Free Trade Agreement (AIFTA)


0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

0

50

100

150

200

250

300

21 J

an

28 J

an

4 Fe

b

11 F

eb

18 F

eb

25 F

eb

4 M

ar

11 M

ar

18 m

ar

25 M

ar

1 A

pr

8 A

pr

No.

of C

ertif

icat

e of

Orig

in

RM m

il.

ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA)




Number and Value of Preferential Certificates of Origin (PCOs)

0

200

400

600

800

1,000

1,200

0

50

100

150

200

250

300

350

400

450

500

21 J

an

28 J

an

4 Fe

b

11 F

eb

18 F

eb

25 F

eb

4 M

ar

11 M

ar

18 m

ar

25 M

ar

1 A

pr

8 A

pr

No.

of C

ertif

icat

e of

Orig

in

RM m

il.

Malaysia-Japan Economic Partnership (MJEPA)


0

50

100

150

200

250

0

20

40

60

80

100

120

140

21 J

an

28 J

an

4 Fe

b

11 F

eb

18 F

eb

25 F

eb

4 M

ar

11 M

ar

18 m

ar

25 M

ar

1 A

pr

8 A

pr

No.

of C

ertif

icat

e of

Orig

in

RM m

il.

Malaysia-Pakistan Closer Economic Partnership (MPCEPA)


0

2

4

6

8

10

12

14

16

18

0.00

0.10

0.20

0.30

0.40

0.50

0.60

21 J

an

28 J

an

4 Fe

b

11 F

eb

18 F

eb

25 F

eb

4 M

ar

11 M

ar

18 m

ar

25 M

ar

1 A

pr

8 A

pr

No.

of C

ertif

icat

e of

Orig

in

RM m

il.

Malaysia-New Zealand Free Trade Agreement (MNZFTA)


0

20

40

60

80

100

120

0

10

20

30

40

50

60

70

21 J

an

28 J

an

4 Fe

b

11 F

eb

18 F

eb

25 F

eb

4 M

ar

11 M

ar

18 m

ar

25 M

ar

1 A

pr

8 A

pr

No.

of C

ertif

icat

e of

Orig

in

RM m

il.

Malaysia-Chile Free Trade Agreement (MCFTA)


0

100

200

300

400

500

600

0

10

20

30

40

50

60

70

80

21 J

an

28 J

an

4 Fe

b

11 F

eb

18 F

eb

25 F

eb

4 M

ar

11 M

ar

18 m

ar

25 M

ar

1 A

pr

8 A

pr

No.

of C

ertif

icat

e of

Orig

in

RM m

il.

Malaysia-India Comprehensive Economic Cooperation Agreement (MICECA)


0

100

200

300

400

500

600

0

10

20

30

40

50

60

70

21 J

an

28 J

an

4 Fe

b

11 F

eb

18 F

eb

25 F

eb

4 M

ar

11 M

ar

18 m

ar

25 M

ar

1 A

pr

8 A

pr

No.

of C

ertif

icat

e of

Orig

in

RM m

il.

Malaysia-Australia Free Trade Agreement (MAFTA)


0

50

100

150

200

250

300

350

400

0

50

100

150

200

250

300

350

14 J

an

21 J

an

28 J

an

4 Fe

b

11 F

eb

18 F

eb

25 F

eb

4 M

ar

11 M

ar

18 m

ar

25 M

ar

1 A

pr

No.

of C

ertif

icat

e of

Orig

in

RM m

il.

Malaysia-Turkey Free Trade Agreement (MTFTA)


Note: *Provisional Data Source: Ministry of International Trade and Industry, Malaysia



Source : Bank Negara, Malaysia

Malaysian Ringgit Exchange Rate with Selected Countries,January 2017 - March 2018

US Dollar

Philippine Peso

Vietnamese Dong

Hong Kong Dollar

Indonesian Rupiah

Indian Rupee

4.4596

3.9031

3.60

3.70

3.80

3.90

4.00

4.10

4.20

4.30

4.40

4.50

4.60

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

2017 2018

RM

USD 1 = RM

8.9685

7.4928

6.50

7.00

7.50

8.00

8.50

9.00

9.50


2017 2018

RM

PHP 100 = RM

0.0197

0.0171

0.0155

0.0160

0.0165

0.0170

0.0175

0.0180

0.0185

0.0190

0.0195

0.0200


2017 2018

RM

VND 100 = RM

57.4972

49.7778

44.00

46.00

48.00

50.00

52.00

54.00

56.00

58.00

60.00


2017 2018

RM

HKD 100 = RM

0.0334

0.0284

0.025

0.026

0.027

0.028

0.029

0.030

0.031

0.032

0.033

0.034


2017 2018

RM

IDR 100 = RM

6.5503

6.8277

6.0018

5.40

5.60

5.80

6.00

6.20

6.40

6.60

6.80

7.00


2017 2018

RM

INR 100 = RM



Sources: Ministry of International Trade and Industry Malaysia, Malaysian Palm Oil Board, Malaysian Rubber Board, Malaysian Cocoa Board, Malaysian Iron and Steel Industry Federation, and Bloomberg.

Commodity Prices

Notes: All figures have been rounded to the nearest decimal point * Refer to % change from the previous week’s price i Average price in the year except otherwise indicated

CRUDE PETROLEUM (BRENT)-per bbl-

13 Apr 2018 : US$72.6, 8.2%*Average Pricei : 2017: US$55.0 2016: US$45.3

CRUDE PALM OIL-per MT-

13 Apr 2018 : US$674.5, 0.2%*Average Pricei : 2017: US$719.7 2016: US$702.2

RUBBER SMR 20-per MT-

13 Apr 2018 : US$1,398.5, 3.4%*Average Pricei : 2017: US$1,646.6 2016: US$1,394.5

COAL -per MT-13 Apr 2018 : US$59.2, unchangedAverage Pricei : 2017: US$57.2 2016: US$45.6

COCOA SMC 2-per MT-

13 Apr 2018 : US$1,662.6, 0.6%*Average Pricei : 2017: US$1,439.0 2016: US$1,609.8

SCRAP IRON HMS-per MT-

13 Apr 2018 : US$380.0 (high), 5.0%* US$350.0 (low), 9.1%*Average Pricei : 2017: US$314.5 2016: US$243.2

HIGHEST and LOWEST 2017/2018

Highest 13 Apr 2018 : US$72.6 29 Dec 2017 : US$66.9

Lowest

9 Feb 2018 : US$62.8

23 June 2017 : US$45.5

Crude Petroleum

(Brent)-per bbl-

Highest 9 Mar 2018 : US$691.5 20 Jan 2017 : US$843.0

Lowest

30 June 2017 : US$650.0 23 Feb 2018 : US$653.5

Crude Palm Oil -per MT-

Domestic Prices13 Apr 2018

Steel Bars(per MT)

RM2,530– RM2,680

Billets(per MT)

RM2,200 – RM2,250

SUGAR -per lbs-13 Apr 2018 : US¢ 12.2, 1.1%*Average Pricei : 2017: US¢15.8 2016: US¢18.2



Commodity Price Trends

Sources: Ministry of International Trade and Industry Malaysia, Malaysian Palm Oil Board, Malaysian Rubber Board, Malaysian Cocoa Board, Malaysian Pepper Board, Bloomberg and Czarnikow Group, World Bank, World Gold Council, The Wall Street Journal.

1,547.0

1,497.0

1,437.51,448.5

1,469.0

1,487.5

1,453.01,463.0

1,361.5

1,384.5

1,353.0

1,398.5

1,250

1,300

1,350

1,400

1,450

1,500

1,550

1,600

26Jan 2 Feb 9 Feb 15 Feb 23 Feb 3Mar 9Mar 16Mar 23Mar 29Mar 6Apr 13Apr

US$

/mt

Rubber SMR 20

1,367.7

1,401.6

1,371.11,386.6

1,536.3 1,532.2

1,673.3

1,720.2

1,699.51,719.2

1,672.5 1,662.6

1,200

1,300

1,400

1,500

1,600

1,700

1,800


US$

/mt

Cocoa

13.4

13.613.6

13.3

13.5 13.4

12.8

12.712.6

12.4 12.312.2

11.0

11.5

12.0

12.5

13.0

13.5

14.0


US¢

/lbs

Sugar

1,547.0

1,497.0

1,437.51,448.5

1,469.0

1,487.5

1,453.01,463.0

1,361.5

1,384.5

1,353.0

1,398.5

1,250

1,300

1,350

1,400

1,450

1,500

1,550

1,600


US$

/mt

Rubber SMR 20

6,90

0 7,08

8

7,11

3 7,28

1

6,91

7

6,85

1

6,73

0

6,33

7

6,08

5

5,96

5

4,51

6

3,98

4

4,36

6 4,60

5

4,17

0 4,47

4

4,46

3

3,97

4

2,95

0

3,47

6

4,11

4

2,500

3,000

3,500

4,000

4,500

5,000

5,500

6,000

6,500

7,000

7,500

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep

2016 2017

USD

/ to

nne

Black Pepper



Sources: Ministry of International Trade and Industry Malaysia, , Malaysian Iron and Steel Industry Federation, Bloomberg and Czarnikow Group, World Bank, World Gold Council, The Wall Street Journal.

64.664.8

64.664.3 64.3

63.8 63.863.4

63.0

60.8

59.2 59.2

56.0

57.0

58.0

59.0

60.0

61.0

62.0

63.0

64.0

65.0

66.0


US$

/t

Coal

1,79

1 1,86

1 1,90

1

1,92

1

1,91

3

1,88

5

1,90

3

2,03

0 2,09

6 2,13

1

2,09

7

2,08

0

2,21

0

2,18

2

2,06

9

1,400

1,500

1,600

1,700

1,800

1,900

2,000

2,100

2,200

2,300


2017 2018

US$/

tonn

e

Aluminium5,

755 5,

941

5,82

5

5,68

4

5,60

0 5,72

0 5,98

5

6,48

6

6,57

7 6,80

8

6,82

7

6,83

4 7,06

6

7,00

7

6,79

9

4,000

4,500

5,000

5,500

6,000

6,500

7,000

7,500


2017 2018

US$/

tonn

e

Copper

9,97

1 10,6

43

10,2

05

9,60

9

9,15

5

8,93

2 9,49

1

10,8

90

11,2

16

11,3

36 11

,972

11,4

95

12,8

65 13

,596

13,3

93

7,000

8,000

9,000

10,000

11,000

12,000

13,000

14,000


2017 2018

US$/

tonn

e

Nickel

66.1 65.5

59.261.7

63.661.3 62.0 62.3

65.9 64.962.1

67.4

70.568.6

62.864.8

67.364.4 65.5 66.2

70.5 70.367.1

72.6

0

10

20

30

40

50

60

70

80


US$

/bbl

Crude Petroleum

CrudePetroleum(WTI)/bblCrudePetroleum(Brent)/bbl




Sources: Ministry of International Trade and Industry Malaysia, Malaysian Iron and Steel Industry Federation, Bloomberg and Czarnikow Group, World Bank.

1,020.0

1,000.0

972.0

1,008.0

994.0

971.0

952.0 954.0960.0

939.0

913.0

929

840.0

860.0

880.0

900.0

920.0

940.0

960.0

980.0

1,000.0

1,020.0

1,040.0


US$

/oz

Platinum

400.0

390.0 390.0 390.0 390.0395.0

410.0 410.0 410.0 410.0

400.0

380.0

380.0

370.0 370.0 370.0 370.0

385.0

400.0395.0 395.0 395.0

385.0

350.0

310

320

330

340

350

360

370

380

390

400

410

420


US$

/mt

Scrap Iron

ScrapIron/MT(High)ScrapIron/MT(Low)

80.41

89.44

87.65

70.22

62.43

57.48

67.74

76.07

71.53

61.66 64.24

72.25 76

.34

77.46

70.35

30.0

40.0

50.0

60.0

70.0

80.0

90.0

100.0


2017 2018

US$

/dm

tu

Iron Ore

17.4

17.0

16.4

16.8

16.616.6

16.516.5

16.7

16.3

16.5 16.5

15.6

15.8

16.0

16.2

16.4

16.6

16.8

17.0

17.2

17.4

17.6


US$

/oz

Silver

43.5

42.8

42.3

43.5

42.7

42.5 42.5

42.1

43.3

42.642.7

43.1

41.0

41.5

42.0

42.5

43.0

43.5

44.0


US$

/oz

Gold




MITI Minister at Sek. Keb. Gual Jedok,Tanah Merah Kelantan, 14 April 2018



MITI Deputy Minister (Trade) at Programme Batik Fun Run, Kg. Desa Temu Jodoh, Segamat ,14 April 2018



MITI PROGRAMMEMITI Deputy Minister (Industry) with Chinese Association,Pontian, Johor, 14 April 2018



NAT

IONAL

BLU

E O

CEA

N S

TRAT

EGY

The idea to establish Value Innovation Centre (VIC) in all ministries was mooted by YAB Dato’ Sri Mohd Najib bin Tun Abdul Razak, the Prime Minister, on 7 November 2017 in his speech during Prime Minister’s Innovation Award 2017 Ceremony. This is in line with the Government’s endeavour to mainstream and add value to innovation initiatives which will enhance public service delivery.

The NBOS Summit on 13 December 2017 agreed that the work to establish VIC to be led by the Chief Secretary to the Government with the collaboration between Public Service Department (JPA), National Strategy Unit (NSU), Malaysian Administrative Modernisation and Management Planning Unit (MAMPU), Prime Minister’s Office (PMO) and all ministries. NSU and MAMPU are the main facilitators that coordinate the implementation of initiatives planned by VIC.

The establishment of VIC in 25 ministries came into effect on 1 February 2018 with the following objectives:•to generate creative and innovative ideas based on the National Blue Ocean Shift (NBOS) principles;•to ensure rapid execution by promoting creative collaboration;and•to share innovative ideas across ministries and agencies.

The institutionalisation of VIC integrates the existing functions such as innovation, quality, transformation, and NBOS which were previously carried out by various divisions/departments under the ministry. It serves as a facilitator/reference point for NBOS principles and methodologies, and other problem solving methods that focus on people-centricsolutionsto promote and cultivate innovation-oriented culture in ministries and government agencies. The centre is headed by a Chief Value Innovation Officer.

The roles of VIC are:•to drive the systematic development and coordinate the implementation of transformationand innovative initiatives, programs and value innovation projects based on NBOS methodology and principles (high impact, fast implementation, low cost and sustainable);•to facilitate the designing and implementation of quality programs in accordance with the standards and guidelines set by MAMPU;•to study the effectiveness and report the progress/status of implementation of NBOS, transformation, innovation and quality initiatives to stakeholders;•topromote the NBOS, transformation, innovation and quality practices among MITI and Agencies;•to provide award and reward programmes to innovative ideas;•to outreach and disseminate information on the effectiveness of NBOS, transformation, innovation and quality practices of MITI to the Rakyat (feel good factor);•to establish networking with the public and private agencies related to innovation and transformation;•to implement capacity building and character building programs and skills to all VIC team members; and•to perform secretarial duties for relevant meetings and committees.

VIC MITI welcome ideas, suggestions and views related to innovation, quality, transformation and NBOS. Do come and visit us at Level 22, MITI Tower, or feel free to contact us [email protected].

VALUE INNOVATION CENTREMINISTRY OF INTERNATIONAL TRADE AND INDUSTRY

Meet the VIC MITI team!

From left (standing):Pn. Salwa, Pn. Asfira, Ms.Eleen, Pn. Hazwani, Pn. ShamalaFrom left (sitting): Ms. Azza, Pn. Azlina



Source: http://www.miti.gov.my/index.php/glossary

of Technical TermsEmployedRefers to all persons who, at any time during the reference week work at least one hour for pay, profit or family gain (as an employer, employee, own account worker or unpaid family worker).

Enabling ClauseDerogates from the MFN principle. It allows members to give better treatment through preferential trading arrangements for trade in goods.

Equipment Manufacturing ServicesCompanies that test, manufacture, distribute, and provide return/repair services for electronic components and assemblies for original equipment manufacturers (OEMs)

Export CompetitionExport competition refers to export subsidy or other measure which acts to maintain producer’s price at levels above those prevailing in international market. This is one of the major pillars negotiated under the Doha Round and consists of Export Credits, Export State Trading Enterprises and Food Aid.

Export Credit Guarantees The Export Credit Guarantees is provided by government entities to guarantee credit up to 100% of the export value on a short-term to long term basis.

Export Credit InsuranceIt is issued by Exim Bank to cover the following risks:• Commercial Risks (e.g. insolvency of buyer)• Economic Risks (e.g. blockage or delay in the transfer of payment to Malaysia, Imposition of import restrictions or

the cancellation of valid import licenses)• Political Risks (e.g. war, revolution or other similar civil disturbance in buyer’s country and unforeseen events)

Export Credits Export credit is provided by a bank in exporter’s country to finance exports.

Export SubsidiesAims to encourage export of goods and discourage sale of goods in the domestic market through low-cost loans or tax relief for exporters, or government financed international advertising or R&D. An export subsidy reduces the price paid by foreign importers, which means domestic consumers pay more than foreign consumers. The WTO prohibits most subsidies directly linked to the volume of exports.

ExportsRefer to goods (locally produced or manufactured or imports for subsequent exports) which are taken out of the country. The value of exports refers to free on board (f.o.b.).

FDIForeign direct investment (FDI) - is an investment made by a company or individual in one country in business interests in another country, in the form of either establishing business operations or acquiring business assets in the other country, such as ownership or controlling interest in a foreign company.



Announcement

Withholding TaxFor more information on Withholding Tax, please visit LHDN’s website via this link: http://www.hasil.gov.my/bt_goindex.php?bt_kump=2&bt_skum=6&bt_posi=1&bt_unit=5&bt_sequ=1&bt_lgv=2

Industry 4.0For more information on Industry 4.0, please visit MITI’s website via this link: http://www.miti.gov.my/index.php/pages/view/industry4.0?mid=559

Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)

For more information on Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)please visit MITI’s website via this link: http://fta.miti.gov.my/index.php/pages/view/71?mid=40



Pan Borneo Highway SarawakThe origins of a planned trunk road connecting the expansive states of Sarawak and Sabah with Brunei in between date back to the 1960s when it was known as the Trans-Borneo Highway.

The impetus for improved road connectivity across Sabah and Sarawak grew in the ‘70s, leading to a plan by the Governments of Malaysia (both Federal and State), Brunei and Kalimantan Indonesia to develop further the idea of constructing a highway along the coastline of Borneo. It would be called the Pan Borneo Highway.

Fast forward 50 years later and Sarawak’s major trunk road system today is the Federal Route 1, part of the Pan Borneo Highway or Trans Borneo Highway. It is mainly a 2-lane single carriageway of JKR R3 standard design. Only 144 km (13%) of the trunk road from Sematan to Lawas is a 4-lane dual carriageway of JKR R5 standard. Travel across the vast state of Sarawak continues to be a long journey – up to 19 hours from Sematan to Miri currently.

To accelerate the social and economic growth of Sabah and Sarawak, a major effort to fully develop and upgrade the Pan Borneo Highway was announced by Malaysia’s Prime Minister in April 2013 as part of the ruling political party Barisan Nasional’s “Akujanji” manifesto to the Nation. This was followed by a commitment in Budget 2015.

Pan Borneo Highway Sarawak was officially launched by the Prime Minister in Bintulu on 31 March 2015. Construction works along a 43 km stretch from the Nyabau to Bakun junctions began soon after.

When completed in early 2022, Pan Borneo Highway Sarawak from Telok Melano to Merapok will span a total distance of 1,060 km. Pan Borneo Highway is slated to be THE transportation backbone of the states of Sabah and Sarawak and will play a major role to open up economic corridors and opportunities

Source:http://www.panborneo.com.my/about-us/

Southern RegionCentral Region

Northern Region



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W. Dyer

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